Diesel Costlier Than Petrol For First Time In India’s History: Here’s Why
In a historic first, diesel became costlier than petrol in India after the state-run oil companies decided to hike fuel prices for the 18th day in a row on Wednesday. However, the difference is little as diesel’s current price is Rs 79.88 per litre, while petrol is being sold at Rs 79.76 per litre in New Delhi. With a hike of 48 paise per litre on diesel and no changes to the price of the other fuel, the oil marketing companies took diesel to a historical high on Wednesday.
Over the last 18 days, the diesel price saw a hike of Rs 10.48 per litre, while the price of petrol was increased by Rs 8.50 per litre.
The global economy is on an all-time low due to the coronavirus pandemic and with the rising international oil prices, we might get to see the domestic auto fuels rate cross the Rs 80 per litre-mark soon.
Here are the reasons why diesel is now costlier than petrol:
*Diesel is one of the most expensive auto fuels globally as its production cost is high.
*In India, diesel’s base price has always been higher than petrol. Then, why has it always been cheaper than petrol? The reason is that diesel is believed to be used mostly by farmers, truck and bus drivers, while petrol is known as a luxury fuel used in cars and motorcycles. Therefore, diesel’s price has always been cheaper than petrol in India to help the underprivileged like farmers, truck and bus drivers.
*The price of diesel shot to a historic high following the Delhi government’s decision to increase Value Added Tax on diesel from 16.75% to 30% in May, this year.
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